Fibonacci retracement line uses actual combat

I made a few pictures, and one picture is worth a thousand words. I am not a master. I just summarize my little experience and hope to have friends to communicate with. There are few people doing foreign exchange, and sometimes I feel quite lonely. It is not as popular as stocks - stock reviews are overwhelming, and experts are blooming everywhere.

When the exchange rate is about to fall back to the 50% correction level: many textbooks will tell you "you can set a stop loss here and enter the market for multiple orders", but rarely how to specify it. In short, it is a little "let you pay for books to read the so-called'always correct 'principle".

I found it easy to get into the market in a hurry, because at the 50% retracement position, it would be repeated several times, and the long and short positions were hesitant to see the direction.

The general situation is that the exchange rate first crosses the correction line and then pulls back. It's not how magical the Fibonacci correction line is. It's mainly because many people use this technology, which leads to its self-realization. You must always be mean and show off in this position. Quoting Lu Xun's famous saying: "When more people walk, it also becomes a road." What I hate the most is to talk about "the mysteries of nature", "holographic information is included in it", "magical mathematics", which is fascinating and pretends to be profound.

The exchange rate then comes down and crosses again for the second time, and then goes up again. At this time, you can place a limit order with a stop loss of 20 points, that is, enter the market when the exchange rate crosses for the third time. I usually use pending orders, mainly to be more accurate, rather than market orders. There is a small remedy: the price of pending orders should not be set at integer points, but 2 points less for multiple orders and 2 points for empty orders, so that it is not easy to sweep the stop loss after placing an order.

I didn't understand it before, and I used the regular stop loss of 30 points. Later, I found that 30 points was redundant and wasted, and 20 points was enough. Losing 20 points is basically the opposite direction, and our sniper failed.

But there is a flaw here, that is, if we go up directly for the second time, the limit order we placed will not be executed and the opportunity will be missed. My personal experience is that it will come back, but I will count this in the future to see if the probability of crossing twice is higher or three times is higher.

One technique is that if you can't wait to miss the opportunity, you can enter the market on the second crossing. If the exchange rate goes a little in the previous direction, you can quickly modify the stop loss to the transaction price position, which is the flat guarantee. This way, you can ensure that you don't lose money, and you are lucky and profitable.

For take profit I set it at 38.2%. The exchange rate will sort out for a while after it arrives here.

In this way, as long as you stare at the small periodic chart when opening a position, wait for the opportunity to place an order and set a flat guarantee, and then you can go to bed. There are two endings: a loss of 20 points and a profit of more than 100 points. If you are lucky to set a flat guarantee, then 20 points will not be a loss.

One last reminder: I used it when I was using Wave Three. Many people don't understand or believe in Wave Three. It doesn't matter, I'm also learning. But if I use Wave Three, the accuracy rate is high. In addition, Wave Three is easy to recognize, and people who have not learned Wave Theory can basically recognize Wave Three.

Let's talk about going against the trend and buying low and selling high. In the daily chart above, you can see that the EUR/USD has been falling for a few days:

1. Assuming that I am bearish on the general trend, I will go long at the 50% retracement position. This behavior is called counter-trend trading. All kinds of foreign exchange books earnestly warn everyone that counter-trend orders are risky, and try not to counter-trend orders.

2. Suppose I am bullish on EUR/USD in a general trend, going long at the 50% retracement position is called "buy low and sell high", and it becomes a homeopathic trade in the general direction.

So I think buying low and selling high is sometimes contradictory to homeopathic operation. Books always talk about big truths, but specific operations are difficult.

If the trend is correct, then buying low and selling high is a temporary counter-trend operation of a small cycle, and it is considered a high profit on the general trend.

If you look in the opposite direction, hehe, then buying low and selling high is pure counter-trend behavior.

More specifically, I have been bullish on EU for a long time and dare not make short orders, so I have 590 points of profit from 1.3330 to 1.2740.

If you reduce the daily chart:

Those who are bearish on the EU will think that the current is a pullback of the downtrend, and the current is the end of the pullback to continue falling.

Bulls, on the other hand, see it as a temporary downside correction in the uptrend reversal phase.